First Security Corp. and United Savings Bank in Salem, Ore., have signed a definitive merger agreement, whereby First Security will acquire United in a stock swap arrangement.
The deal, first announced in August, awaits approval of United shareholders and government regulators. Under the agreement, United stockholders will receive .7083 shares of First Security for each outstanding share of United Savings.First Security chairman and chief executive Spencer F. Eccles said the acquisition should be completed by the first quarter of 1990.
United is an FDIC-insured, $204 million asset savings bank with nine branches and one loan office serving northwestern Oregon. It is the eighth largest bank in that state. First Security, also FDIC insured, has operations in Utah, Idaho and Wyoming.
The United purchase is the third acquisition announced this year by the $5.5 billion First Security.